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Methanex abandons Western Australia plans.(News)(Brief Article)

FACED WITH skyrocketing capital costs, Methanex Corp. will not proceed with a planned 1.3 million metric ton methanol plant on the Burrup Peninsula of Australia. Instead, the company will take a $40 million onetime, noncash charge in the third quarter to write off the costs incurred in developing the project.

Initially, Methanex had planned a 2 million ton plant in Darwin, Australia. The company later scaled that project back to 1.3 million tons and moved the planned facility to the Burrup Peninsula in Western Australia.

"We have rigorously studied several combinations of sites, technologies and scale in Australia, but we have been unable to develop a methanol project ...

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